RECEIVABLES-PAYABLES MANAGEMENT AND LIQUIDITY TRAP- A CASE STUDY OF SELECTED COMPANIES OF INDIAN CEMENT INDUSTRY

Dr. Pramod Kumar Pandey

Abstract


Receivables constitute a substantial portion of current assets and are mainly guided by credit policy decisions taken by the business enterprise. Extending credit would be a fruitful solution only if extra revenue generated from extending credit period exceeds the cost of credit. Accounts payable is basically a short term financial obligation for a business enterprise. The efficiency of the accounts payable management has a bearing on a company’s cash flow, credit rating and operational costs. Proper Receivables and Payables Management is key to maintain a balance between liquidity and profitability. The Author in this paper has thrown light on actual scenes as is existed regarding Receivables and Payables in Indian Cement Industry, highlighted the importance of proper Receivables and Payables Management, discussed as to how the companies may improve their Receivables and Payables Management and may avoid the situation of liquidity trap.

Keywords


Receivables, Payables, Liquidity, Credit, Cost of credit

Full Text:

PDF

References


Amit kumar Arora, Management of Working Capital, 1st Edition, Global Academic Publisher, New Delhi

BabuN.Suresh and Prof.G.V.Chalam, study on the Working Capital Management Efficiency in Indian Leather Industry- an Empirical Analysis, IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 4, No.5, October 2014, , Mr. PP 196-201

Dabasish Sur and KaushikChakraborty , “Evaluating Relationship of Working Capital and Profitability: A Study of Selected Multinational Companies in the Indian Pharmaceutical Sectior”, The IUP Journal of Management Research, Vol. X, No. 2, 2011.

L.A.Soenen, Cash conversion cycle and corporate profitability. Journal of Cash Management, 1993, PP 53–58

M.S Mohan Kumar, Aswathanarayana T, An impact of negative working capital on profitability – A case study of selected cement companies in India, International Journal of applied Research, 2015, PP 170-173

Panigrahi. A.K, relationship of working capital with liquidity, profitability and solvency: a case study of ACC limited, Asian journal of management research, PP 308-322

Qazi Hassan Aftab, Syed Muhammad Amir Shah, Zaheer Abbas and TanzeelaNadeem, Impact of working capital on firms’ profitability ,African Journal of Business Management, Vol. 5 (27, November, 2011-), pp. 11005-11010

Singh Gurmeet, Negative Working Capital - A Case Study of Selected FMCG Companies in India, SAGAR: International Journal of Management & Research, Volume: 1 Issue: 1 (Jul-Sept. 2016), PP 18-27

Annual Reports of Shree Cements Limited, Ultra Tech Cement Limited, Birla Corporation Limited, ACC Limited and Dalmia Bharat Limited


Refbacks

  • There are currently no refbacks.




Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Copyright © 2019 INTERNATIONAL EDUCATION AND RESEARCH JOURNAL